Gold climbed to a record high in London and New York, stimulated by Japan's
decision to cut its key interest rate and escalate its asset purchase
programme.

Gold, up 2pc this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. On Tuesday, bullion for immediate delivery added as much as $13, trading at $1,326.97 an ounce in early London trading.

The metal has rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies.

The Bank of Japan on Tuesday pledged to keep its benchmark interest rate at “virtually zero”, after unexpectedly reducing borrowing costs for the first time since 2008.

Amid fears of economic instability, investors' appetite for gold as protection of wealth has surged. Gold, usually moving inversely to currency, has this year outperformed global equities, government bonds and most industrial metals.

Also on Tuesday, silver advanced to a 30-year high, increasing 1.3pc to $22.2319 an ounce – the highest level since September 1980.